Can employer threaten to withhold paycheck?

[twuoo]

I gave my two week's notice of resignation. This coming Friday will be my last day.

The manager (not the owner) calls me today and says if I don't have charts completed, she will with hold my paycheck.

I almost felt like telling her if she chooses to hold my paycheck, then I'll just keep the charts too.

I'm not sure what there is to be gained in a pissing contest, but the manage is just young and has very poor people skills. She thinks the world of herself.

I am working as an independent contractor. I have every intention of completing my work. I felt the 'threat' was tacky and unnecessary I've been trying to get reimbursed for equipment from the employer since February now too!

I was originally going to offer to work some sidejobs for the employer, but after this, forget it!

Any thoughts?

[justbroke]

Ah, the kicker is that you're an independent contractor. Do you have a contract whereby you have milestone payments, or are paid for specific units of work? Otherwise, you are compensated hourly and should be paid regardless of completion as you're basically "time and materials".

Interesting that this employer played this. If they don't pay, contact your State's Department of Labor and file a complaint. This will not be good for an employer when the DoL starts looking into the employer's books (I know someone it happened to who ended up paying $250K in back pay over one single incident).

Unfortunately, I don't know how to instruct you on how to compel the employer to pay. I would review your contract. If there's no specific "deliverables" where you get paid for producing a specific named item in the contract, then I would remind "her" of the contract and that should she decide not to compensate you for the hours worked, you will have no choice but to immediately file a claim with the Department of Labor and simultaneously file in small claims.

That's all I have.

(Reads like you're going to need to sue them anyhow.)

[relief13035]

Are you an employee of the business? You mention "independant contractor". Does this employer pay you and deduct taxes or are you paid like a vendor completing a job?

They can not withhold wages. If taxes are taken out of your check, and they withhold your pay, take them to the Labor Board. You will win and they will pay penalities for each day that they didn't pay.

But, if you are not taxed, you will have to take them to small claims court.

[twuoo]

I am paid hourly. There was never a contract, even though I asked for one. I've been working since mid December now. The manager tried to pull the same crap about a month and half into the job, threatening to withhold pay if charts weren't updated. Thing is that nobody showed me the proper way to update charts.

In the time I've been with the employer, I've seen my boss less than 6 times. Not alot of help from him.

I do have to pay my own taxes. It's rather burdensome. I've never done this kind of work method before. I've always has taxes withheld by the employer. I basically give back 35% of my check to the government it seems.

Thanks for the advice. It helps to direct my thought process of what I may need to do.

[StartingOver08]

twuoo, did you say you are paid hourly but taxes are not withheld?
Sounds like it does not meet the official definition of a 1099 independent contractor.

There is a test, from our friends at the IRS to determine if you are truly an independent contractor. "The general rule is that an individual is an independent contractor if you, the person for whom the services are performed, have the right to control or direct only the result of the work and not the means and methods of accomplishing the result."

To get more specific info, go to this link: http://www.irs.gov/businesses/small/...=99921,00.html

Yes, when you are an independent contractor, we pay a LOT in taxes because you pay the entire burden, there is no employor componet. Of course, we deduct the business expenses first...

[CarrieOakey]

I gave my two week's notice of resignation. This coming Friday will be my last day.

The manager (not the owner) calls me today and says if I don't have charts completed, she will with hold my paycheck.

I almost felt like telling her if she chooses to hold my paycheck, then I'll just keep the charts too.

Do NOT hold anything of theirs like that; whether she's in the wrong (she is) or in the right doesn't give you the right to withhold company property. And those charts would be company property. Don't give them ANY reason to have a grievance against you, k? If they withhold anything from you, take it through the correct channels.

But don't hold on to anything of theirs. That will come back and haunt you.

[twuoo]

Thanks for the insight CarrierOakey. Sometimes it's just a knee-jerk reflex to want to do something, even if it makes no sense.

[justbroke]

Do NOT hold anything of theirs like that.

I agree with this statement. Take the high road. Don't hold their "property".

[Ifonly]

Definitely finish the job and turn over the charts. However, if you are not paid what you are owed, you should have no problem reporting them to the IRS. From what you've described your work does not legally fall under the IRS definition of an independent contractor as a previous poster stated. There are 20 "tests" they use and one of the largest is who controls the time you work, and the methods used to complete the project. If they are directing you as to the "how" these charts get completed, you are technically an employee rather than an independent contractor. The IRS will view this as the employer attempting to "duck" their FICA burden.

I believe that there is even a form that can be included on your tax return stating that you believe you were treated as an independent contractor in error and you can petition to have the employer's share of FICA returned to you - and they will go after the employer.

Heck, if they make you miserable, you might just want to fill out that form with your tax return even if they do pay you. They're the ones who are technically breaking the tax law and by doing so, they're taking money out of your pocket. They're also ducking Workers' Comp and state taxes, not just FICA.

[WillinVT]

Ah, this reminds me of my employer when they let go a bunch of people back in 2003. I work for a computer manufacturing company and the head IT guy of the area I work in was let go. In order for him to collect his severence package, he had to train a new employee to do his job.

Talk about a slap in the face

[frustrated7]

Not all that long ago, I had a job I worked at for just over a week. On my second day on the job, one of the big shots there was yelling at my department saying that if every single chart was not up to date by the next day (there were hundreds of out of date charts and our department only had small parts of the charts), they would withhold paychecks. I wasn't supposed to get a check that early and was brand new, but that made a bad impression on me. That was pretty much the way they ran their organization...unethical and questionable legal activity. I worked there a week and a half and frankly that was too long.